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Japan GDP Rises 4%

The big news of the week was Japan’s impressive 4% gross domestic product growth for the second quarter of the year. This was the biggest increase since the first quarter of 2015. The growth also makes Japan the fastest-growing economy among the Group of Seven advanced economies, Kyodo reported. Private consumption gained 0.9% on a quarterly basis, while business spending expanded 2.4%. The total size of the economy grew to 545 trillion yen ($5 trillion). The biggest gains were in consumption and business spending, both essential ingredients in sustaining the nation’s expansion. The world’s third-largest economy, Japan could be in even better shape if Prime Minister Shinzo Abe could overcome ancient tradition and political opposition by welcoming large-scale immigration. The GDP jump happened despite anemic increases in wages at the biggest employers, and despite the central bank’s continuing struggle to fully escape decades of either very low inflation or deflation. Japan’s population is aging and shrinking, having peaked in 2009.